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IRAS Records Whopping $68.6bn Tax Collection, Marking Post-Pandemic Rise!

Discover the Secret Behind IRASs Record Revenue
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  1. IRAS collects record tax revenue in FY2022/23, marking a 13% increase due to economic recovery.
  2. Corporate Income Tax (CIT) stands as the largest contributor, followed by Individual Income Tax (IIT) and GST.
  3. Amid encouraging economic recovery, staples of revenue collection like Stamp Duty, witness a surprising slump.

Singapore weathers another fiscal year, and with it come the treasury coffers’ figures.

The Inland Revenue Authority of Singapore (IRAS) reported astounding tax revenue of 68.6 billion for FY2022/23, a notable 13.1% increase from the previous year, mirrored with an economic recovery post-Covid-19.

IRAS reports improving compliance as arrears drop and the adoption of enhanced digital services.

Lifting Off: IRAS Revenue Reveals Economic Turnaround

It’s an economic haiku chillingly familiar.

Pandemic hits; revenue slumps. Recovery kicks in; revenue spikes.

The collection of 68.6 billion in FY2022/23, a 13.1% climb from the fiscal year before, is a plain sign, like a north star to a lost mariner – we’re on the path to recovery.

“The increase reflected the economic recovery following the end of the Covid-19 pandemic,” the report details.

Unsurprising, perhaps, but like a recurring sunrise, the promise of a new day never belittles its worth.

CIT Leads the Pack: But Should We Grin or Grimace?

The poster child of this year’s recovery is Corporate Income Tax (CIT).

A goliath that single-handedly chalked up the majority of the IRAS revenue collection, amassing a whopping 23.1 billion.

Individual Income Tax (IIT) trails behind at 15.5 billion and Goods and Services Tax (GST) at 14.1 billion.

Forecasts and trends – these may make the finance minister’s amendments easier for accountants to digest.

But at the end of the day, it’s the taxes drawn from our everyday living, working, buying and selling, that swell the government’s coffers, fuelling the economy further.

Such as it is, “CIT made up the largest share of IRAS revenue collection… on the back of buoyant corporate earnings.”

The Curious Case of the Falling Stamp Duty

Yet, not all’s sunny in the revenue landscape.

Stamp Duty, once the belle of the tax ball, experienced a decline.

Down by 0.8 billion or 12%, owed to a decreased volume of transactions.

A blip in an otherwise rising trend, or a prelude to more profound changes, it remains to be seen, but it’s worth keeping an eye on.

A Digital Futurist’s Delight

Another tale to follow, as compelling as any detective’s chase, is the rise of digital services.

IRAS pulled the tech-transformer lever, implementing mobile-friendly e-platforms and intuitive chatbots.

And just as the butterfly emerged from the chrysalis, a 12% uptake in digital self-help services made its debut in FY2022/23.

The virtual assistant even garnered positive feedback from 70% of users who leaned on its digital shoulder – “70% of taxpayers who have used the chatbot rated it positively.”

A signal of tech advancements bathing the public service sector in a new light.

In conclusion, the IRAS revenue collections stands as a beacon of health in our rebounding economy.

But with the popcorn surprise of Stamp Duty’s slump and the exciting upward graph of digitalisation, isn’t it worth asking – What could FY2023/24 hold for us?

In the dance of numbers and trends, only time will reveal the next splendid performance.

What do you think?

Written by Patrick Tan

Meet Patrick, the word wizard of Daily.SG! He whips up news about Singapore that's so simple, even toddlers give him a thumbs up. When he's not writing, you'll find him sipping milk tea, gliding on skates, or striking a yoga pose. Dive into his stories and feel the sprinkle of fun and a whole lot of heart!

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